IRCON Q2 profit down 18% YoY, margins narrow amid revenue decline

IRCON International Ltd, a major player in railway construction, announced its second-quarter results post-market hours on Thursday. The company reported a 17.8% year-on-year (YoY) decline in net profit to ₹206 crore, down from ₹250.7 crore in the same period last year. Despite this, the net profit showed an increase from the previous quarter’s ₹176.51 crore.

Revenue for the quarter fell by 19.3% YoY to ₹2,447.5 crore, compared to ₹3,033.3 crore in Q2 of the previous year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a significant decline of 23.3%, reaching ₹201 crore, down from ₹263 crore a year ago. Consequently, the EBITDA margin narrowed slightly to 8.2% from 8.6% in Q2 FY24.

Domestic and International Revenue Impact

Domestic revenue took a hit, decreasing by 17.8% YoY to ₹2,206.03 crore, while international revenue saw a sharper decline, falling to ₹92.83 crore from ₹197.67 crore in the same quarter last year.